Optical amplifier systems normally require optical devices such as optical isolators, optical couplers and the like which have varying levels of polarization dependent loss. Polarization Dependent Loss (PDL) can be defined as the variation in insertion loss as a function of the polarization of an input signal to an optical device. For optical amplifier systems that use optical components, the polarization dependent loss of the various optical components or devices can result in signal degradation. Presently, polarization dependent loss measurements of optical devices are obtainable to an accuracy 0.01 dB. To minimize the cumulative polarization dependent loss due to optical components which are present in an optical transmission system, a more accurate measurement of the polarization dependent loss of the various optical components is needed. This invention is directed toward solving this problem.